Indonesia has received investment proposals from South Korean and Taiwanese players who are willing to put in millions of dollars in the film and cinema exhibition business.
This comes close on the heels of the government announcing lifting of foreign investment caps from a wide basket of sectors, including the film industry segments.
Indonesia Investment Coordinating Board head Franky Sibarani said, they have received interest from South Korean investors who are planning to invest up to $200 million to build new cinema screens across up to 800 points in the country while a Taiwanese company has set aside $5 million for the same purpose.
With a population of 250 million, Indonesia has one of the lowest penetration of movie screens at just 1,000.
Early in February, the government revised its negative investment list, to allow 100% foreign ownership in certain sectors, including in the film industry in areas such as technical services, production, distribution, exhibition and cinemas.
“This policy change is expected to encourage the development of national film industry,” he said, in an official statement.
Sibrani said, more and more companies investing in the field of cinema can generate a huge multiplier effect for the economy of Indonesia. “In the future, creative economy can become the backbone for Indonesia’s economy,” he said.
Indonesian cinema industry has been dominated by Cinema 21 Group followed by Blitz Megaplex, partly owned by a South Korean investor. The competition in the cinema industry is likely to hot up with the entry of new cinema operator of Lippo Group, Cinemaxx Global Pasifik, a subsidiary of First Media, in 2014 as well as the entry of foreign investors in the market.
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